Outlier Ventures: 5 trends in the Blockchain ecosystem

posted almost 6 years ago
1. UK second only to the US as global blockchain hub. The blockchain market is dominated by the United States with 38.9% of the startups either registered or with development work taking place in the country. The second most important country is the United Kingdom with 16.7% of all blockchain startups based there.

2. The US has a heavy Bitcoin bias. The United States is heavily invested in Bitcoin. This is a function of entrepreneurs and investors being first to market before other alternative blockchains and use cases had been developed. Companies and products have been built around the Bitcoin blockchain.

3. London is the center of the Blockchain Fintech scene. The UK is heavily-weighted toward blockchain use cases in FinTech. With 115 companies (that are listed in Outlier Ventures tracker) there is a lot of diversity; and a lot of companies building products around settlement and clearing, insurance and financial trading.

4. There is limited location clustering around use cases. Beyond London and financial services the data does not show any clear sign of startups clustering in the same countries to solve the same problems. Use cases, such as supply chain and logistics, are being targeted by startups around the world, in Israel, Singapore, Italy and the United States for example. Internet of Things startups using the blockchain are based in Kenya, Germany, the UK and the US.

5. Location might not matter at all anymore. Not only is there very little regional clustering, but just as the blockchain itself is distributed so too are the teams working for blockchain startups. With 28%, startups with ‘no HQ’ constitute the second largest ‘location’ of blockchain startups and projects.
Tags: blockchain, opinion